How do I Improve my Cash Flow after Christmas?
- johnry8
- 4d
- 3 min read
Updated: 1h
1. Review Where Your Business Stands Today
Before you can improve your cash flow, you need a clear picture of your current financial position.
Review the following:
Revenue sources and expected payment dates
Recurring expenses and once off holiday costs
Current bank balances
Updated cash flow forecast based on December spending
2. Follow Up on Outstanding Payments Immediately
January is one of the worst months for late payments because many clients are also recovering from holiday expenses.
To speed up your collections:
Send gentle reminders as soon as invoices fall due
Introduce clear payment terms or request deposits for new work
Offer small incentives for early settlement
Set automated reminders to reduce manual follow up
3. Protect Your Essentials First
When cash is limited, you need to prioritise:
Payroll
Rent or loan repayments
Utilities
Core business tools or software
4. Talk to Your Suppliers Early
Suppliers want to maintain good relationships and are often willing to help if you reach out early.
You can:
Request extended payment terms
Arrange a short term payment plan
Adjust order quantities
Review existing contracts for better pricing
5. Review your Expenses
January is the perfect time to remove hidden or forgotten costs.
Look for:
Unused subscriptions
Tools with overlapping features
Marketing expenses with low return
Services that no longer add value
6. Convert Your Inventory Into Cash
For businesses that hold stock, slow moving inventory can restrict cash flow more than you realise.
You can free up cash by:
Offering clearance prices on old seasonal stock
Creating bundles that increase perceived value
Running short term promotions to drive urgency
Donating unusable items for potential tax benefits
7. Review Available Financing Options
Even strong businesses experience temporary cash flow gaps. If you have addressed internal factors and still need support, short term financing may help.
Options include:
Business loans
Line of credit
Invoice financing
Trade finance
8. High Impact Strategies
Cost cutting alone is sometimes not enough. Revenue generation plays an equal role in improving cash flow after Christmas.
Consider:
New year promotions for returning customers
Personalised email campaigns
Seasonal packages or limited time offers
Upselling and cross selling with every purchase
Partnership marketing with complementary businesses
9. Strengthen Your Customer Payment System
Improving how customers pay you can improve cash flow.
You can:
Set stricter payment terms
Request deposits for custom work
Offer multiple payment options
Introduce direct debit arrangements
Use accounting software to automate invoicing
10. Improve Your Cash Flow Processes
Cash flow problems often come from process gaps rather than poor sales.
Strengthen your systems by:
Regularly updating your cash flow forecast
Scheduling monthly financial reviews
Setting internal approval rules for spending
Tracking your budget against actual performance
11. Start Building a Cash Reserve for Future Seasons
Even small amounts saved consistently can protect your business during slow periods.
An accountant can help you structure a reserve that covers:
One month of operating expenses
Seasonal slowdowns
Unexpected emergencies
12. Book a Business Advisory Session
We can help you:
Create a personalised cash flow plan
Review your pricing strategy
Identify profit leaks
Optimise tax strategies
Forecast the next twelve months with greater accuracy
If cash flow has become a concern, Rise Accountants can help you.
Our team can help you create a clear plan that supports both short term stability and long term success.